Goldman Sachs withdrew its request for a summary judgment on the lawsuit it faces in London's High Court for its dealings with a Libyan investment fund, setting the stage for a trial.

The Libyan Investment Authority, which sued the Wall Street firm in January alleging the firm exerted "undue influence" over the fund's managers and left it saddled with money-losing trades, said Tuesday that Goldman had pulled its application to avoid trial "following the serving of the LIA's reply evidence."

The lawsuit claims Goldman took advantage of its relationship with the Libyan fund, dating to 2007, to gain its managers' "trust and confidence," resulting in large investments and "inadequately documented" trades.

A Goldman spokesman said Tuesday that "we continue to believe this case is entirely without merit and intend to contest it vigorously as it moves through the legal process."

The more than $1 billion in equity-derivatives trades Goldman handled for the sovereign fund in 2008 expired worthless three years later, according to the Libyan Investment Authority's lawsuit, which seeks to recover its losses. Goldman made $350 million in profits on the trades.

Goldman had filed its summary judgment request in April "on the basis that it contended that the LIA had no realistic prospect of success at trial," according to the Libyan investment fund.

"The LIA contends that the summary judgment application was misconceived and issued purely for tactical reasons, including a desire to delay the determination of the LIA's claims," the fund said in a statement.

The LIA said the court will hold a hearing in early October over the matter.

The Wall Street Journal reported in February that the US Justice Department and the Securities and Exchange Commission were investigating Goldman along with other banks, private-equity firms and hedge funds on concern they may have violated antibribery laws in its dealings with the LIA.

A spokeswoman for the Justice Department and a spokesman for Goldman declined to comment. An SEC spokesman had no immediate comment.